Payroll Tax Services
Keeping up with payroll tax rates, accurately calculating liabilities, and making timely payments can be time-consuming. As part of our payroll offerings, you'll get instant access to our payroll tax service, Taxpay®, an automatic tax administration service. Paychex provides the following tax benefits:
- Payroll tax calculation
- Payroll tax payment
- Filing of your payroll taxes with your appropriate agencies
- Time savings and reduced risk of penalties for late or inaccurate payments
Working with Paychex Has Its Benefits
Claim Tax Credits Without the Hassle
Applying for tax credits can be complicated and time-consuming. We make it easy by taking care of the rigorous requirements.
Stay Compliant
We’ll create a well-documented and legally compliant audit trail to help you claim your credits.
Only Pay for Credits Found
This service is completely free for Paychex clients. You only pay a fee when we find credits.
Save with Potential Tax Credits
Employee Retention Tax Credit (ERTC)
The Employee Retention Tax Credit (ERTC) is a refundable credit that businesses can claim on qualified wages paid to employees during the pandemic. Businesses could earn either $5,000 per eligible employee annually for 2020 or $7,000 per eligible employee per quarter 2021 (through Sept. 30 for most businesses). Our ERTC Service can help:
- We are one of the only providers offering ERTC Service
- Switch to Paychex as your payroll provider and we’ll use your payroll data
- It’s easy to check if you are eligible, and if you aren’t you won’t be charged a fee*
Work Opportunity Tax Credit (WOTC)
Hiring from groups that face barriers to employment, such as food stamp recipients, temporary assistance for needy family recipients, and unemployed veterans, can make you eligible for federal and state tax credits ranging from $1,200 to $9,600 per eligible employee. We’ll help you apply for the WOTC:
- Applicant eligibility verification and screening via paper, phone, or web/li>
- Preparation and filing of applicant pre-screening forms
- Tracking of hours worked and wages paid
- Quarterly and annual reports showing credits you’ve earned
Location-based credits
To encourage economic development in select areas of the U.S., the government has established tax credits available to qualified business owners. Credits can total as much as $3,000 per qualified employee per year, which you can use to reduce your federal income liability. We’ll help you apply for location-based credits:
- Documenting address changes, hours worked, and wages and credits earned for qualified employees
- A comprehensive year-end report for easy preparation of tax returns
- Maintaining documentation and an audit trail for seven years
- Tracking changes to legislation and regulations to help your credits stay in compliance
Research & Development (R&D) Tax Credit
Changes to your design or development processes to make them cheaper, greener, or faster could earn you tax credits. The R&D Tax Credit can be applied both to new product development and manufacturing, and software development production. Industries likely to qualify for this tax credit:
- Manufacturing and fabrication
- Engineering
- Construction
- Software development
- Electronics
- Biotechnology
- Surgical techniques
- Oilfield services
- Food sciences
- Agriculture
Other types of tax credits
Paychex Tax Credit Services can also assist with:
- Research and Development Wage-Based Credit
- Cost segregation
- Training incentives
- State tax credits
- Grant screening and writing
- Domestic production deduction
Seasonal Business Gets Year-Round Service to Meet Its Tax Requirements
As a seasonal business, Super Seal Sealcoating Company owner Greg Duffy has been using a seasonal hold through Paychex for 35 years that suspends his payroll service in the off-season while still supplying W-2s to his employees.
"Having a seasonal business ... (a seasonal hold) is a beautiful fit. I tell them in October, there's a small charge to do my quarterlies over the winter and do my W-2s. Then come April, (Paychex) says, "Greg, are you ready to come back.' "
Business Owner Finds a Service to Help Remove a Taxing Burden
Jonathan Kirkendall tried to do it all himself and handle his own taxes — and every year for more than 20 years he owed and had fallen behind. In his first full year using Paychex services, the licensed psychotherapist got a refund that helped get him back on track.
“I was looking for a (payroll provider) who could help me very specifically with quarterly taxes. … I had fallen behind. I just needed some regular help because working with an accountant once a year wasn’t enough. … (Working with Paychex) has been peace of mind. … I’m getting a refund this year and … that’s amazing.”
Do More with Paychex Tax Services
Paychex Taxpay® makes it easier to avoid tax penalties and our tax credit services help you save money by helping you find tax credits so you can focus on taking your business further.
Other Products to Consider
In addition to helping you with your business taxes, Paychex has a variety of solutions designed to simplify your business challenges.
